In the early days following the IPO, there is a high illiquidity in market for the stock
. Market timing becomes difficult and short-sellers might find it difficult to borrow stocks from big shareholders. There are also chances of big price declines because of highly active short-covering by traders when the initial short-interest for the IPO fades. Similar selling-activity can also occur at the end of the lock-up period when large shareholders can sell their holding. Visit us http://www.stockinvestmenttips.in